Snap Target of Unusually High Options Trading (NYSE:SNAP)

Key Points

• Snap experienced unusually heavy options activity with traders buying 151,680 call options, about 35% above typical call volume.
• Significant insider selling occurred: General Counsel Zachary Briers sold 134,705 shares at $4.70 and CTO Robert C. Murphy sold 1,000,000 shares at $5.36, contributing to 2,570,641 insider-shares sold last quarter while insiders hold 22.68% of the stock.
• Shares jumped 6.5% to $5.49 despite an EPS miss ( $0.03 vs. $0.15 est.) and mixed fundamentals; analysts maintain a consensus "Hold" rating with an average price target of $8.06.

Snap Inc. (NYSE:SNAP - Get Free Report) was the target of some unusual options trading on Tuesday. Traders acquired 151,680 call options on the company. This represents an increase of 35% compared to the typical volume of 112,133 call options.

Insider Buying and Selling

In other Snap news, General Counsel Zachary M. Briers sold 134,705 shares of the company's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $4.70, for a total value of $633,113.50. Following the sale, the general counsel owned 2,854,088 shares in the company, valued at approximately $13,414,213.60. The trade was a 4.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CTO Robert C. Murphy sold 1,000,000 shares of the firm's stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $5.36, for a total transaction of $5,360,000.00. Following the transaction, the chief technology officer owned 49,313,775 shares of the company's stock, valued at approximately $264,321,834. The trade was a 1.99% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 2,570,641 shares of company stock valued at $13,436,343 in the last quarter. 22.68% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Snap

A number of institutional investors have recently added to or reduced their stakes in SNAP. Allworth Financial LP boosted its stake in shares of Snap by 92.3% in the 3rd quarter. Allworth Financial LP now owns 3,293 shares of the company's stock worth $25,000 after buying an additional 1,581 shares during the last quarter. Oak Harvest Investment Services purchased a new stake in shares of Snap during the fourth quarter valued at approximately $26,000. Arax Advisory Partners lifted its holdings in Snap by 220.0% during the fourth quarter. Arax Advisory Partners now owns 3,309 shares of the company's stock worth $27,000 after acquiring an additional 2,275 shares during the period. V Square Quantitative Management LLC purchased a new position in Snap in the fourth quarter worth $29,000. Finally, EverSource Wealth Advisors LLC grew its stake in Snap by 561.4% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,618 shares of the company's stock valued at $29,000 after purchasing an additional 3,071 shares during the period. 47.52% of the stock is owned by institutional investors.

Snap Stock Up 6.5%

Shares of NYSE:SNAP traded up $0.34 during mid-day trading on Tuesday, hitting $5.49. 54,577,588 shares of the company traded hands, compared to its average volume of 52,564,660. The stock has a 50-day moving average price of $4.88 and a two-hundred day moving average price of $6.82. Snap has a 12-month low of $3.81 and a 12-month high of $10.41. The stock has a market cap of $9.26 billion, a P/E ratio of -20.31 and a beta of 0.91. The company has a current ratio of 3.56, a quick ratio of 3.56 and a debt-to-equity ratio of 1.53.

Snap (NYSE:SNAP - Get Free Report) last released its quarterly earnings results on Wednesday, February 4th. The company reported $0.03 EPS for the quarter, missing analysts' consensus estimates of $0.15 by ($0.12). The company had revenue of $1.72 billion during the quarter, compared to analysts' expectations of $1.70 billion. Snap had a negative net margin of 7.76% and a negative return on equity of 20.72%. The company's quarterly revenue was up 10.2% compared to the same quarter last year. During the same period in the previous year, the company posted $0.01 earnings per share. On average, equities research analysts forecast that Snap will post -0.3 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. Wells Fargo & Company cut their price target on Snap from $8.00 to $6.00 and set an "equal weight" rating on the stock in a report on Tuesday, April 7th. Roth Mkm set a $7.00 target price on Snap in a report on Thursday, February 5th. Bank of America raised shares of Snap from a "neutral" rating to a "buy" rating and set a $10.00 price target for the company in a research report on Thursday, February 5th. Weiss Ratings restated a "sell (e+)" rating on shares of Snap in a research note on Wednesday, January 21st. Finally, The Goldman Sachs Group dropped their price objective on shares of Snap from $9.50 to $8.50 and set a "neutral" rating on the stock in a research note on Tuesday, January 13th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twenty have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, Snap has a consensus rating of "Hold" and an average price target of $8.06.

About Snap

Snap Inc is a camera and social media company best known for developing and operating Snapchat, a multimedia messaging application that allows users to send photos, videos and messages that disappear after being viewed. In addition to its core messaging service, Snap offers a suite of augmented reality (AR) tools, including custom Lenses and Filters, that enable users and third-party developers to create interactive and immersive experiences. The company also provides advertising solutions that allow brands to engage audiences through Snap Ads, Sponsored Lenses and Discover content on the platform.

Founded in 2011 by Evan Spiegel and Bobby Murphy, Snap has continually focused on innovation in camera technology and AR.

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